Businesses are 3x More Likely to be Sued by an Employee than Experience a Fire
What is EPLI and Why is it Important?
Employment Practices Liability Insurance (EPLI) is a form of insurance that protects a business against wrongful acts that can take place during employment such as discrimination, wrongful termination and workplace harassment, retaliation, defamation and more. The rate at which businesses, including small ones, are exposed to these risks is staggering.
EPLI applies to not only current employees, but also past employees. An EPLI policy can relate to certain types of claims, or to all. Generally speaking, EPLI covers both the judgment/settlement cost, as well as the defense cost. It is important to have EPLI because of the extreme cost that can come along with an EPLI claim.
How Much Does EPLI Cost?
As with most insurance types, the premium depends on different factors. The factors that go into calculating the cost of EPLI are past occurances of EPL claims, the size of the business, number of employees, and more. There are different degrees of coverages to be had, so that can also influence pricing. It is important to work with an agent that is well versed in the market, as rates may differ among insurers. In a small to medium size business, the annual premium may range between $2,500 and $5,000. The cost of EPL claims average around $70,000, which makes the average premium sound minuscule.
What Can You Do to Prevent an EPL Claim?
The most important thing to do in order to save your business from a claim, is educating all of your employees (along with yourself) about all of the possible issues that can cause a claim. It is also important to have a company policy that all employees are aware of, that states the rules that will keep your business in the clear. Along with that, it is necessary to discipline when the policy has been broken, in order to keep it strict and set an example for other employees.
If you are currently insured, it is important to understand the extent of your EPLI coverage, and if you aren’t, it is important to know the risks and get covered. Looking for a quote or have questions? Contact Professional Liability Insurance Group.
